Weekly Cannabis Stock News: CannTrust Gets Busted

<p class = "canvas-textile textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – -sm" type = "text" content = "He and Canopy Growth were far from the only ones Discussion topics in the pot circles this week It was a legal case with one of the top Canadian producers a large sales increase with a packaging and accessory maker, and a historical consultation on pot tasting in the congress. "> He and Canopy Growth were far from the only topics in the discussion in the pot circles this week. It was a legal case with one of the best Canadian producers, a major sales increase with a packaging and accessory maker, and a historic pageant hearing in the congress.

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CannTrust's non-compliance

<p class = "canvas text text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The week in marijuana- shares did not go up to an encouraging start Monday before the opening call, Canadian Grower CannTrust Holdings (NYSE: CTST) admitted that it received a non-compliance report from the regulator Health Canada. 26 "> The week in marijuana shares did not go up to an encouraging start. On Monday, before the opening bell, Canadian producer admitted CannTrust Holdings (NYSE: CTST) to receive a non-compliance report from Governor Health Canada.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It seems that the company grew around 5,200 kilograms product in five rooms in its Niagara greenhouse that was not licensed at that time (October 2018 to March 2019) All told, the facility has 12 growing rooms, CannTrust then put a voluntary team of around 7,500 kilos of others fixtures grown in these rooms data-reactid = "27"> The company seems to have grown around 5,200 kilograms of product in five rooms in its Niagara greenhouse which was not licensed at that time (October 2018 to March 2019). The plant has 12 grow rooms, CannTrust then put a voluntary hold of around 7,500 kilos of other stock grown in these rooms.

The company's management did not completely absorb all the blame for government, in a press release, saying the non-compliance report was "based on observers from the growing cannabis regulator in five unlicensed rooms and inaccurate information provided to the regulator of CannTrust employees. "So much to stand up and take a cool and to keep employee morale through a controversy.

Although marijuana is now legal across the board in Canada, lawmakers take their regulation very seriously. There is little excuse for not being in full compliance at all times, especially considering that a company in the worst case may lose its cannabis license if it does not.

CannTrust loses trust from its investors and it will be difficult to recover. Almost 50% slide in the share price this week can stay or worsen, depending on how the situation develops.

Landmark Pottery Hearings in Congress

Momentum can build a form of legalization on the spot where it counts most – the US Congress. This week, for the first time, the Crime, Terrorism, and Home Security Subcommittee held hearings on relaxing federal marijuana laws.

Support seems to be broad and sufficient for marijuana law reform in both congress halls, with both Democrats and Republicans indicating that they are ready to change. A bill aimed at marijuana legalization, the state's law, was introduced in the Senate last year and co-sponsored by both Republicans and Democrats. A company bill was introduced in the house.

Although this is an important first step on the road to potential decriminalization, if not full legalization, it faces more obstacles.

The first is consensus, since the congressional opinions differ on the goals and the best paths towards the unloading of federal law. One second is the attitude of top political figures. Majority leader Mitch McConnell seems resistant to marijuana legalization, while President Donald Trump has shown lukewarm support at best.

However, as with more recent developments in cannabis, such a hearing would have been outperformed just a few years ago. The fact that this is being taken seriously, debated and even legislated in the form of these bills, is an encouraging sign for the marijuana industry that the legitimate ice will soon melt … at least to some extent.

The story continues [19659022] KushCo triples sale

<p class = "canvas-atom lerik Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " KushCo Holdings (NASDAQOTH: KSHB) delivers some heavy top-line growth. " KushCo Holdings (NASDAQOTH: KSHB) delivers some strong top line growth.

<p class = "canvas-atom canvas-text Mb em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The marijuana supply and packaging specialist unveiled his Q3 of fiscal 2019 results on Tuesday, largely due to organic demand growth, quarterly sales tripled and then some to $ 41.5 million from $ 12.9 million in Q3 2018. Gross profit doubled over this period to land of $ 7.4 million data-response time = "43"> Marijuana supplies and packaging specialist uncovered their Q3 of fiscal 2019 results on Tuesday, which showed that largely due to organic demand growth, quarter sales increased and then Some $ 41.5 million from $ 12.9 million in Q3 2018. Gross profit doubled over the time period to $ 7.4 million. [19659025] Unfortunately, both operating and net losses strengthened. was the deficit in Q3 2019 not much deeper, at $ 10.6 million against $ 9.2 million in the quarter.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0)) – sm Mt (0.8em) – sm" type = "text" content = "All in all, the results were encouraging. Net loss is Expected in the upcoming marijuana industry, and KushCo is not scary enough to discourage investors, the company also has a useful niche in its business, and its efforts to reign in costs bear fruit, and there is also smart capitalization on popularity. for modern consumables which evaporates (vapes). "data-reactid =" 45 "> All in all, the results were encouraging. Net losses are expected in the near marijuana industry, and KushCo is not scary enough to discourage investors. In addition, the company has a useful niche in its business, and its efforts to reign in costs bear fruit. There is also the smart capitalization of the popularity of modern consumables, such as vaporizers.

Finally, the ambition of listing on Nasdaq will provide legitimacy on the KushCo share and attract interest from mutual funds and individual investors in the more traditional industry.

<p class = "canvas-atom texttext Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Mer From The Motley Fool "data-response time =" 47 "> More from Motley Fool

<p class =" canvas-atom texttext Mb (1.0em) Mb (0.8em) – sm "type =" text "content =" [19659026] Eric Volkman has no position in any of the aforementioned shares. Motley Fool recommends CannTrust Holdings Inc and KushCo Holdings. disclosure rules . "data-response time =" 52 "> Eric Volkman has no position in any of the aforementioned shares. Motley Fool recommends CannTrust Holdings Inc and KushCo Holdings. Motley Fool has a disclosure policy.